JanineR
(Tennessee)
Posts:86
 |
| 04/05/2021 12:11 PM |
|
Math Question:
One Bedroom HOA monthly fees = $206.80
Two Bedroom HOA monthly fees = $310.20
Short Term units are defined as renting for less than 30 days.
The amendment to Bylaws adding in STR's say this:
"The rate of assessments for each Short Term Unit shall initially be established at one and one half ( 1.5%) times the rate applicable to two bedroom units . This ratio of assessments between short term units and two bedroom Units may be adjusted as determined from time to time by the Board of Directors of the Association . Assessments totaling twelve ( 12 ) months
for each Short Term Unit must be paid in lump sum at the time of registration and are nonrefundable regardless of the Owners intent to cease short term rental."
Given the above riddle,
How much should the initial annual assessment for short term units be for a:
* one bedroom unit?
* two bedroom unit? |
|
|
|
|
JanineR
(Tennessee)
Posts:86
|
| 04/05/2021 12:13 PM |
|
double posted see:
https:https://www.hoatalk.com/Forum/tabid/55/forumid/1/postid/301839/view/topic/Default.aspx//www.hoatalk.com/Forum/tabid/55/forumid/1/postid/301839/view/topic/Default.aspx |
|
|
|
|
JanineR
(Tennessee)
Posts:86
|
| 04/05/2021 12:16 PM |
|
Let me try again:
https://www.hoatalk.com/Forum/tabid/55/forumid/1/postid/301839/view/topic/Default.aspx |
|
|
|
|
DouglasK1
(Florida)
Posts:1569
|
| 04/05/2021 12:52 PM |
|
My reading of the docs you provided is that all STR units pay 1.5 x 2 BR assessments.
I have my doubts about whether assessment changes can be made by amending the bylaws, I would think it would take a CCR amendment. |
|
Escaped former treasurer and director of a self managed association. |
|
|
CathyA3
(Ohio)
Posts:1746
|
| 04/05/2021 1:43 PM |
|
Posted By DouglasK1 on 04/05/2021 12:52 PM
My reading of the docs you provided is that all STR units pay 1.5 x 2 BR assessments.
I have my doubts about whether assessment changes can be made by amending the bylaws, I would think it would take a CCR amendment.
Agree, both on the math as described in the proposed amendment and the unlikelihood that this can be done via amending bylaws.
In addition, assessments are paid by the owners of the units, and it's extremely doubtful that people who stay less than 30 days are "owners" in any sense of the term. Landlords can "assess" their tenants whatever they want - it has nothing to do with language in the governing documents.
FWIW, assessments in condo communities are usually based on par value, or percentage of ownership, and this is defined in the CC&Rs. The sum total of all percentages adds up to 1. It requires approval of a majority (and often a super-majority) of owners to approve changing this.
|
|
|
|
|
JanineR
(Tennessee)
Posts:86
|
| 04/05/2021 1:58 PM |
|
The percentage sign is throwing me off too, as 1.5 times and 1.5% are different.
Does this generally read that both one bedroom and two bedroom both pay 1.5 times of the 2 bedroom if they are STR's.
So one bedroom = $310.20 * 1.5 = $465.30
and same with two bedroom = $310 * 1.5 = $465.30
Both the same?
Or is it just reading that whatever the STR two bedroom rate is, it is 1.5 times more than the one bedroom STR rate? Whatever that may be. |
|
|
|
|
DouglasK1
(Florida)
Posts:1569
|
| 04/05/2021 2:49 PM |
|
Posted By JanineR on 04/05/2021 1:58 PM
The percentage sign is throwing me off too, as 1.5 times and 1.5% are different.
Does this generally read that both one bedroom and two bedroom both pay 1.5 times of the 2 bedroom if they are STR's.
So one bedroom = $310.20 * 1.5 = $465.30
and same with two bedroom = $310 * 1.5 = $465.30
Both the same?
Or is it just reading that whatever the STR two bedroom rate is, it is 1.5 times more than the one bedroom STR rate? Whatever that may be.
I missed the 1.5% reference. Whoever wrote this amendment apparently didn't realize that 1.5 times would be 150%, or they should have not put in the % sign. My reading is all STR units would pay $465.30.
Cathy hit the nail on the head regarding assessments being defined in the CCRs and not something that can be changed by a bylaw amendment. Having different payment terms (have to pay full year) for the STRs is also probably not allowed by the CCRs. If the board tries to enforce this and any affected owner decides to fight it, a lot of money could end up being spent on lawyers.
|
|
Escaped former treasurer and director of a self managed association. |
|
|
JohnC46
(South Carolina)
Posts:10817
|
| 04/05/2021 2:52 PM |
|
Posted By JanineR on 04/05/2021 1:58 PM
The percentage sign is throwing me off too, as 1.5 times and 1.5% are different.
Does this generally read that both one bedroom and two bedroom both pay 1.5 times of the 2 bedroom if they are STR's.
So one bedroom = $310.20 * 1.5 = $465.30
and same with two bedroom = $310 * 1.5 = $465.30
Both the same?
Or is it just reading that whatever the STR two bedroom rate is, it is 1.5 times more than the one bedroom STR rate? Whatever that may be.
Cathy is right. In a rental situation the owner (landlord) can chrge whatever the he!! they want to charge. |
|
|
|
|
KerryL1
(California)
Posts:7949
|
| 04/05/2021 4:36 PM |
|
| Cathy & Douglas are right. If the original "math" is in the CC&Rs, that is what your Assn. must change. NOT your Bylaws. |
|
|
|
|
JanineR
(Tennessee)
Posts:86
|
| 04/05/2021 6:59 PM |
|
The amendment was screwed up in many ways. It was titled wrong, and it co-mingled master deed and bylaw amendments. And it didn't recognize any previous amendments filed with the state. The management company was not aware of them, even though they have been our PM for 11 years. The document supposedly was prepared by a lawyer, but it is all over the place.
The additional assessment is to be paid to the HOA. Now more than double the regular hoa assessment. |
|
|
|
|
CathyA3
(Ohio)
Posts:1746
|
| 04/06/2021 6:37 AM |
|
Posted By JanineR on 04/05/2021 6:59 PM
The amendment was screwed up in many ways. It was titled wrong, and it co-mingled master deed and bylaw amendments. And it didn't recognize any previous amendments filed with the state. The management company was not aware of them, even though they have been our PM for 11 years. The document supposedly was prepared by a lawyer, but it is all over the place.
The additional assessment is to be paid to the HOA. Now more than double the regular hoa assessment.
As Douglas mentioned, you're asking for legal trouble if you try to assess the short-term rentals differently unless your CC&Rs or state law say that they may be treated differently.
I get it, short-term rentals can be a real nuisance, and increasingly states and local municipalities are making laws to limit them.
But the place to control them is in your CC&Rs with a rental restriction that is strictly enforced. Unfortunately, unless your community is almost entirely owner-occupied, that horse has probably left the barn.
What you're left with now, aside from whatever laws may apply, is to vigorously enforce your CC&Rs and transfer the costs of violations onto the landlords, where they belong. It's not great - fining a landlord for a three-day nuisance party doesn't help all of the folks who couldn't get any sleep while this was going on. On the other hand, the short-term rental landlords make their money by pocketing as much income as possible and transferring as many costs as possible onto the association. You want to change the economics of this to make short-term rentals less attractive to the landlords. |
|
|
|
|